Lawmakers rely on transfers to keep ferry budget afloat

SEATTLE — Washington State Ferries Director David Moseley warned that legislators can’t continue to transfer money from dwindling highway accounts to keep ferries afloat, but they took that route again.

Since WSF lost license tab revenues in 2000, it has been stabilized by transfers from the Motor Vehicle Account ($243.8 million) and Multimodal Account ($153.2 million). The transportation budget passed last week includes $45.5 million from motor vehicle, $42 million from multimodal and $42 million from the Highway Safety Account. The $129.5 million total for the 2013-15 biennium is about the same as was allocated the past two years.

“That level of transfers is not sustainable in the long term, given the condition of those accounts in the out years,” Moseley said.

Sen. Nathan Schlicher, D-Gig Harbor, said the transfers weren’t enough and lawmakers worked with WSF to find $10 million in savings to buy back proposed service cuts. Washington State Ferries, at the Department of Transportation’s direction, had identified $4.8 million in service reductions, including trips between Bremerton and Seattle.

Passage of a 12-year, $8.4 billion transportation revenue package presented by Rep. Judy Clibborn, House Transportation Committee chairwoman, would make transfers unnecessary. The proposal would have to be accepted during the special session, then passed by two-thirds of both the House and Senate or by a majority of voters.

“This is the first time we’ve actually had a bill that makes the ferry system sustainable over the next 12 years,” Moseley said.

Making it sustainable over the next two years are $485 million for operating and $291 million for construction. Sixty-seven percent of operating costs — $328 million — will come from fares, Moseley said. A 2.5 percent fare increase is assumed.

The capital budget includes $143 million to complete two 144-car ferries being built at Vigor Shipyards. Other big projects include $22 million to convert the Hyak to hybrid power and $13.7 million in improvements at the Mukilteo terminal. Locally, the Bainbridge terminal will get $4.5 million in preservation work, Kingston $1.3 million and Southworth $930,000.

—$250,000 for the DOT tolls division to develop a plan to integrate ferry payment, customer service and reservation systems into the statewide tolling customer service center.

—WSF must develop a fuel-reduction plan and submit it with its 2014 supplemental budget proposal.

—$7.3 million for lease payments on the headquarters building. WSF is directed to try to consolidate office space in downtown Seattle. It can consider renewing the headquarters lease only if it can get the rate reduced by at least 50 percent and show it’s the least cost and risk.

—$3.8 million for reservation and communications system projects.

Outside of the ferries, Kitsap Transit received up to $3 million in toll credits that can be used as the local match on ferry projects, such as upgrading the Annapolis dock to make it ADA accessible, cross-Sound ferry planning and improving a float at Bremerton Transportation Center.

Local road projects include:

—$8.8 million for widening Highway 3 through Belfair.

—$3.4 million to improve Highway 302 from Purdy to Key Center Highway.

—$355,000 to pave Highway 303 from about Sutton Road to Silverdale Way.

—$175,000 to install a signal at Highway 303 and Ridgetop Boulevard.

Rep. Jan Angel, R-Port Orchard, got language into the budget directing the Joint Transportation Committee to convene a work group to study refinance options for the Tacoma Narrows Bridge.

Schlicher said his proposal to cut Tacoma Narrows Bridge administration by 2 percent spurred a 20 percent reduction for the entire tolling division, amounting to $2.9 million savings statewide and $1.6 million for the bridge.

Nearly every member of Kitsap’s delegation in the House and Senate voted to approve the transportation appropriations bill. Rep. Drew MacEwen, R-Union, voted against it.